Good morning, everyone, and welcome to this webcast covering Incap's second quarter and half year 2026 results. My name's Pauliina Tennilä and I will be hosting this webcast today.

The speakers are Incap's President and CEO Otto Pukk and CFO Antti Pynnönen. Otto and Antti will walk you through the results, after which we will go through your questions.

You can post your questions at any time using the Q&A function. A recording of this webcast will be available on Incap's website later today.

With that, I'll hand it over now to Otto Pukk.

Thank you very much, Pauliina, and hello, and thank you for all who are tuned in and listening to this webcast and have interest in Incap. We might have a little bit technical difficulties today.

I'm in India, and hopefully all the presentations and so will work, but otherwise we will share the presentation as Pauliina said, also the webcast in a whole so you can go back and have a look at it. The first half of the year is over, and we did a smaller adjustment in that sense in here just a few days ago when it comes to the steering.

With that taken into account, the year have gone as we have expected. We ended up the first half on 130.2 million, which, of course, is a big increase compared to previous year.

Of course, here a large contribution of this is as well the LAC-ROH acquisition that now is in more fully than perhaps in Q1 and so on. Nevertheless, it's an increase from year on year.

EBITDA ended up 11.7%. The profitability was a little bit impacted by, of course, the change in business mix that we have had with the acquisition, but also we have some postponements in deliveries, also in the second quarter.

Some were postponements, you remember, in the first quarter to the second, but these challenges has impacted. If we look at full year, then, of course, the foreign exchange impact that was in the first quarter also impacted the first half in that sense.

Business-wise, we have concentrated a lot on the integration, of course, getting our new team members in and working to increase the collaboration that we have between the units. All of this, of course, is a drive to drive organic growth, which is currently our main target, and I'm happy to say that in quarter two, then we have got back into organic growth.

We had a 4.2%—4.1% organic growth, but quarter-to-quarter it's a 20% increase, and we're moving in the right direction with the organic growth. We can take the next slide.

As you saw in one of our releases, we have changed a little bit the management structure that we work on, and this also to support our organic growth issues. We are now larger company, and we are a little bit more organized regionally, and this is to support the collaboration and also the way we work towards organic growth in the different units that we're in.

I'm very happy with that development, and I think that will help us to support organic growth moving forward. Yes, next slide.

We have also with our new acquisitions so strengthen our position segment-wise, and here in one picture is an example of how our defense team coming together here in Helsinki earlier this year, but we see that also across other segments. I think this is also the knowledge, how to say, that we have accumulated and are, as a whole, will help us moving forward with driving growth and finding synergy and cross-selling opportunities in the company.

That, of course, with the added capabilities that we now have in engineering and with the general broader service offering in the group, I think will provide good value for our customer and help us to grow our business. Yes, you can continue.

As always, we continue to invest in our operations during this first half, and so we have invested now in cleanroom facilities in Slovakia. We strengthen our SMT and testing here in India, where I'm at currently.

Also in Estonia, we have invested in conformal coating and other smaller investments across the group. For us, it's always important to keep on developing and keep on investing in our operations so we can provide world-class services to our customers.

Also, when it comes to how we work, we have, for example, in Germany, and Romania during this quarter, got certified on ISO 27001, the IT standard, which is, of course, very important for our customers that are in different more regulated markets. This initiative, we are continuing with in the group, and we have a plan now going site by site and continuing to get certified on this worldwide IT security and management system.

Yes, and basically over to you, Antti.

Thank you, Otto. Then we start looking through the second quarter results.

Here are the main figures that we recorded. Revenue grew 34%, totaling 74.2 million.

Then, like Otto mentioned, of course, this this is first full quarter we had our quite large acquisition, LAC-ROH company, in in consolidated into Incap figures, so that drove the the number up. As we wrote in the report, the pure organic growth was 4.1% in second quarter.

Comparable EBIT was 6.5 million euros, which means 8.8% from the revenue. That number was impacted by 850,000 salary-related, personnel expense-related, I would say, more like one-off type of costs in in quarter two 2025.

There was an accrual release, which gave some upside in in the comparison year, but this this year, same topic was actually cost, the delta was this 850k. I think that is good to understand.

Then operating profit was was mentioned there as well, but I'll come back to that one on on the graph on this one here. There was also impact on currency exchange rates, but it wasn't that much actually in the second quarter.

That's why we didn't highlight that much on the on the Q2 report, but instead of first half, January-June period, this this deal played a role, mainly driven by the the US dollar compared to the 2025 figures, so that played a role. Yes, if we look into this this graph here, this is what we have listed here.

The jump indeed in the revenue, big jump here is explained by the acquisition. Then we can see the the operating profit here in in the right-hand side on the monthly basis, quarterly basis, and then we have, of course, the the percentage here.

A little bit down there, but then we will discuss, I think, later on also about the the margins. Then if we look into the next slide, this is just a summary of the slides.

I wanted to highlight again the the inventory levels. There has been some some delays in Incap projects in already we mentioned that in the first quarter.

We saw some material availability challenges, and then that continued to be similar way in the second quarter. Then that that is something that is also increasing our inventory levels, now totaling almost 84 million.

There's quite big increase from the year-end closing, which was 52 million, but again, LAC-ROH acquisition explains majority of this delta. Interest-bearing net debt we have listed also here as one KPI we we are following continuously, 9.1 million.

Then the personnel exceeded slightly over 3,000. Then if we look into the next slide.

Then

it's me again, isn't it? We changed our outlook here on the 24th, as I mentioned before.

We estimate now that the year will end somewhere between 270 and 290 million in revenue, and the EBITDA will be somewhere from 26 to 29 million in the year. That's the estimate, and we haven't changed it since we gave it just a few days ago.

I think we are ready for questions, and take it away, Pauliina, and I hope we get interesting questions to answer.

Thank you, Otto and Antti. Let's indeed begin with the Q&A.

Maybe as the first question, in addition to the LAC-ROH's impact on your revenue, your organic growth picked up in Q2. What is driving that and how do you see that moving ahead?

Of course, our main focus now is driving organic growth, and this, of course, is to create as much value for our customers and for our owners as well is key. Before we have looked also on inorganic growth, and I think, of course, that is somewhere there, but it's very tough market currently with very high valuations when we look at different kind of M&A targets and so, and for us responsible capital allocation is always a key, and with our multiples being at the level that they are currently, then, of course, organic growth is what we are focusing on.

I think we have a very strong basis for driving organic growth. We have a good now positioning with the new service offering and a strong team with the new Incap now, the larger Incap, and I'm quite sure that our efforts in this will continue to yield result and to move forward.

Already, as I said, we see it now compared to last quarter, it's already 20% up organic growth, and I think that from quarter-to-quarter is already a good indication where we are going.

May I add a few things? Then traditional Incap businesses where we have been very strong, like power electronics and this has been quite stable, but then if you look into new sectors that have been picking up, like defense sector, so that already played a big role in second quarter versus year-on-year on this 4% growth.

We have had good success stories in defense sector recently, yeah.

Thank you. There's a question about India, and could you please elaborate on the situation there and the increased competition that you mentioned?

Is this the certain market segments that you also mentioned in the profit warning? India, and I'm in

India now. Of course, India is a very important part of our company, and we have a great team here in India.

EMS market here is very hot. There's a lot of competition coming up, and those that follow, for example, EMS companies on the Mumbai Stock Exchange see that they're very high valuations.

There a lot of investments into the market, and this, of course, have an effect also, new players coming in and increased competition compared to what was perhaps a few years ago or even going back farther when perhaps we were one of the first EMS companies or international companies here in India. We see a bigger competition and more players on the market in general.

I wouldn't say that it's in any particular segment. It's more geographical or, how to say, thing that the companies are coming up.

We have a lot of OEMs as well moving their manufacturing and their R&D facilities here to India, it's a hot place to be, and especially here in Bangalore or near Bangalore, we are in Tumkur, just outside Bangalore, and in this area, what's called the Silicon Valley of India. Hot market, and, of course, it also gives opportunities, but with more competition than it used to be.

How about the competition and your headcount? Have you lost some business in India, and what is the status of production in India currently?

The headcount has decreased actually in India, that's the question about, and the production status.

The headcount, of course, always fluctuate depending on what product mix we have and what kind of business we drive. Look, volume-wise, I think we have increased the business in India, but it all depends, of course, on the product mix and how it turns out in the revenue numbers and so.

In general, we are all attracting new accounts here, we are ramping up new larger customers as pointed here in some interview here during the quarter also mentioned when we were talking about India. There is a lot of positive development in India, and I wouldn't say that we have lost any customer accounts.

Of course, it's pressure with the increased competition, and this is something we need to maneuver with. At the same time, India is as a market growing, and there's a lot of opportunities, and we see that we are working together with many multinational companies now here in India, and I'm still very positive on being here and the potentials that we are pursuing.

Thank you. There's maybe another question still about the competition, and I would maybe turn this into: why is India so hot?

What is sort of the root cause? Why do you think the EMS market is doing so well there?

No,

let's begin with that every year in India, 1.5 million engineers graduate. 1.5 million engineers.

Put that into perspective on many European countries, just a sheer number. They are all English-speaking.

They have great engineering schools here in India, and this is, I think, the key driver: the availability of engineers. In Europe, in US, in many places in the world, there's lack of engineers.

Here in India, there is engineers available. That is driving, of course, many companies to invest into India, into R&D and utilizing this engineering power that is in India.

I think that is the main driver, the engineers in India. Then add that to also that India is a democracy, one of the few democracies in Asia that you can drive and run manufacturing in.

That is, of course, a huge difference between doing business here compared to perhaps some of the more totalitarian states in the region. There's a lot of things talking before India, and I think the engineers are the main factor.

Of course, there's a growing market as well in the India itself, which is very attractive for many companies and also for Incap.

Thank you. Moving on to other units and markets, do you see margin pressure intensifying also in other units than India?

How would you describe the business in other parts of Incap's operations?

Of course, there's always margin pressure in the EMS business. Price, quality, and on-time delivery is some kind of hygiene factors.

We all deal on the same margin market. No, not in the same way as we see here in India.

We don't see increased, how to say, competition and that kind of margin pressure. It's more focused on India currently, and so if you look at my statement in that sense.

How about LAC-ROH? You have not published the figures about LAC-ROH's business, but is there anything to comment on that, on the financial development of LAC-ROH during 2026?

I think there has been a positive development. We have had great order intake.

As Antti mentioned, some of the defense projects, there have been some delays in the start. We have accumulated materials due to that, to build up our inventory.

Overall, we have the high order intake we mentioned during quarter one have continued in the second quarter. I think the LAC-ROH in general has, how to say, performed well, and there is still good opportunities here, and once we get the projects start more in scale, then I think the numbers will show as well

in this. I think one key thing is that we still have been, of course, very early in the integration.

Then the key message also is that the integration has gone very well. Of course, now it's moving into the phase that focusing on harvesting the synergy, the teams in the Incap sales and LAC-ROH team sales, they are collaborating and sharing the leads and doing this cross-efforts on boosting the sales.

Then I believe the figures will be picking up. As I mentioned already, the second quarter was the first full quarter, we are very beginning in this journey.

It has gone better than expected in terms of all streams in the integration. Then yeah, the second half, I think we will start seeing increasing financials as well.

As Otto mentioned, there was the all-time high order intake for this big defense customers, and those start to impact also in the figures at some near future.

Thank you. Maybe moving on then to more strategic questions, there's a question about what strategic options are you considering, and maybe we can combine that with another one where somebody's asking if you are expecting a new acquisition before the year-end.

As I mentioned, we are focusing on organic growth, and so that is the key focus currently. Of course, when we do acquisitions, it must be value-creating.

Then if you look at the current multiples that deals are being done with, and compare those to our trading multiples, then it's hard to make value-creating acquisitions from a pure metrics in that sense. Of course, there might be strategic alternatives, there might be bolt-on acquisitions where we acquire some customers in that I would more count as organic growth.

Main focus is to develop our current operations and to focus on organic growth. I think that is the key message from this.

How about the organic growth? How would you describe the focus?

Are you focusing on existing customers or new customers?

We are both, of course. We are focusing on both existing customers and new customers.

We are always trying to increase our offering to the customers we have. That's perhaps the easiest way to drive organic growth.

New customer acquisition, of course, is always welcome, and that's something we work strongly with the team to achieve.

Thank you. Maybe we take one more question going back to the figures, and there's a question about the personal costs, and they have doubled in Q2.

Is there anything else but LAC-ROH and the accruals which would explain this increase, and do you expect similar personal cost level in coming quarters?

As I briefly commented, then compared to the year-on-year quarters against each other, this almost 900,000, I would classify as a one-time cost, is explaining partially that one, and then the rest is mainly driven by LAC-ROH acquisition. As I mentioned, they are now reporting full quarter under the Incap, then those two elements explain, I would say, 98% of this growth.

Going forward, obviously this 900k, which has been now mentioned a few times, so that will not materialize anymore going forward, at least in Q3, Q4.

Thank you, Antti. I think we have covered now all the answers, one way or another, I would like to hand it over once more back to you, Otto.

Would you like to recap?

Yes, thank you very much, Pauliina and Antti as well, and, of course, thank you to all that has been listening in. Please reach out to us if you have more questions.

We always try to be available for our investors and analysts and so on. Reach out if there is anything.

We will, of course, continue with our work, and we will see you sooner than later in different interviews and other things as well. Thank you for listening, and I think the main takeaway from this is that organic growth, we have already result in this, and we continue to grow and develop the company and create value for you shareholders.

Thank you very much.